Hyderabad, India, May 04, 2026 (GLOBE NEWSWIRE) -- According to a recent report by Mordor Intelligence, the automotive software market size is entering a high-growth phase, rising from USD 21.08 billion in 2026 to USD 32.93 billion by 2031, at a CAGR of 9.33%. Growth is driven by the shift toward software-defined vehicles, where centralized computing, over-the-air (OTA) updates, and subscription-based features are becoming standard. Spending is accelerating fastest in electric vehicles, particularly in battery management and diagnostics. At the same time, stricter regulations in Europe and North America are pushing automakers to strengthen cybersecurity and OTA capabilities. Chinese OEMs are further advancing adoption through integrated driver features, while the broader market continues to transition toward recurring, software-led revenue models. Automotive Software Market Trends and Growth Drivers Chinese automakers rolling out Level-2+ autonomous features are significantly increasing ADAS software complexity and code volumes Chinese automakers are intensifying competition by offering advanced ADAS features like urban navigation and automated lane changes at no extra cost, unlike Western brands that charge per feature. This approach is shifting the focus from hardware to software depth, increasing the complexity of sensor fusion and edge-case handling. Although revenue per vehicle may decline, more vehicles are now equipped with advanced systems, boosting the need for powerful real-time operating platforms to manage these workloads. The transition toward centralized zonal E/E architectures by OEMs is driving higher demand and spending on middleware systems Automakers are moving away from numerous standalone ECUs and shifting toward centralized computing systems that group functions by vehicle zones. This change helps reduce wiring, optimize space, and improve resource sharing across applications. As a result, middleware is becoming a critical layer, managing data flow, ensuring real-time performance, and supporting seamless OTA updates. At the same time, strict safety requirements are limiting supplier options to